US DOJ unlikely to approve Sprint T-Mobile merger

US DOJ unlikely to approve Sprint T-Mobile merger

Sprint is also pushing the merger, though not as publicly as T-Mobile. That paragraph states that Justice Department staffers told the companies the planned merger is unlikely to be approved as now structured.

In a new report from Wall Street Journal, the merger between T-Mobile and Sprint has hit resistance from the Department of Justice's antitrust division.

Sprint Executive Chairman Marcelo Claure said the Wall Street Journal report was not accurate.

This was a heated topic of debate at the Congressional Hearing and it seems the DOJ is concerned about the impact on current Sprint employees and the fate of their jobs, as well as the raising of service rates following the merger, which has proven to happen in similar mergers throughout Europe.

A third person familiar with the investigation said the probe was going along as expected, adding there had been no serious discussion of any divestitures of spectrum or other assets and that much of the conversation with regulators had been about proposed efficiencies in the development of 5G. The ball is in T-Mobile and Sprint's court to convince our government that a merger of the two carriers won't be a bad thing.

Sprint declined to comment.

Sprint shares are down more than 9 percent in after-hours trading.

For the past four years, T-Mobile and Sprint have been trying to merge together.

The Obama administration rebuffed the companies' earlier effort to merge, as well as an attempted deal between AT&T and T-Mobile, on concerns such deals would hurt competition in the wireless industry. But the companies' own previous statements about their 5G plans contradicted those claims, and government officials don't appear to be impressed by the 5G argument. When companies as big as T-Mobile ...

A final decision on the matter isn't reportedly slated to come down for several weeks.

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